Minimum wage: Take half a loaf

Gov. Chris Christie Monday conditionally vetoed a bill that would raise the minimum wage by $1.25 an hour to $8.50 and provide annual cost-of-living increases. The governor has expressed concern about its impact on businesses.

Christie instead supports phasing in a minimum-wage hike over three years that would reach $8.25, as well as the restoration of an earned income tax credit for the working poor. He opposes the annual cost-of-living increase.

Democrats are responding to the veto with threats to take their plan directly to voters, which would amount to an end-run around the governor.

We're with Christie on this one. Democrats would be foolish and irresponsible not to accept half a loaf on this, assuring a reasonable increase over three years. If voters say no, then what?

It can sound downright cold-hearted to argue against a minimum-wage hike, or to quibble over 25 cents an hour here or there. No one would dispute that the minimum wage isn't nearly enough on its own to get by in New Jersey, even with the larger hike proposed by the Democrats. The average New Jerseyan would typically say that businesses should pay their lowest-income workers more.

But Christie is right to keep the ripple effects in mind. This isn't just about bumping up the pay of minimum wagers; it can also force businesses to raise salaries for those just above the minimum as well.

That's good news for the workers themselves, and may even provide a broader economic boost. But if it also forces companies already treading water to cut jobs and/or worker hours to compensate, the net result can do more harm than good.

Christie is still encouraging a wage hike. But a phase-in not only provides companies with more time to adjust, it also raises the likelihood that improvements in the economy may allow those additional costs to be absorbed with no impact on the work force.

The automatic cost-of-living adjustments also are problematic, eliminating protections against economic valleys that may make increases at certain times impractical and counterproductive. It's easy to climb up on a soapbox and declare that minimum wages must go up every year on behalf of the little guy. That ignores the reality that such a policy may ultimately hurt the little guy.

What seems apparent here is that Democrats are putting their quest to score some political points against the governor ahead of responsible leadership. They want to be seen as going to bat for their constituency; voter approval means a home run, voter rejection still means they did all they could to overcome the stubborn Christie obstacle.

It is the governor, however, who is trying to strike a better balance between labor needs and management needs that can - if done right - benefit everyone. The Democrats should listen, negotiate and take the best deal. And that doesn't mean tossing it all off on the voters to decide.

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Minimum wage: Take half a loaf

Gov. Chris Christie Monday conditionally vetoed a bill that would raise the minimum wage by $1.25 an hour to $8.50 and provide annual cost-of-living increases. The governor has expressed concern

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